Peermont repays eurobond with rand debt

Comment on this story

Cape Town - Peermont Global, South Africa’s third-largest casino and hotel operator, raised debt from local banks and stockholders to repay euro-denominated bonds and free up cash to expand its resorts.

The Johannesburg-based company got a 4.1 billion-rand six-year loan from banks in Africa’s second-biggest economy, as well as a 1.13 billion-rand, 6 1/2-year loan from shareholders, it said in an e-mailed statement today.

It also issued preference and ordinary stock amounting to 71 percent of its share capital to repay a further 6.2 billion rand of debt.

Peermont is seeking to cut its costs and free up cash for new projects, including a 325 million-rand casino resort at Burgersfort in the northern Limpopo province, Peermont Chief Executive Anthony Puttergill said in the statement.

“The new debt and equity package significantly lowers debt-funding costs and eliminates expensive foreign-currency hedging,” the company said.

“The new capital structure allows for much-enhanced flexibility for the group to pursue further growth opportunities.”

The Mineworkers Investment and black-empowerment trusts established by Peermont will own 25 percent of the company after the transaction, according to the statement. - Bloomberg News

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines